Tracking business Expenses - reimbursing owner


J

John Pippy

How are people here in this group handling expenses that are incurred by the
owner. For example, owner purchases supplies for the business, the receipts
exceed what is in petty cash.

What I have set up is that if the receipts total 500 and the petty cash
remaining is 150. I write a cheque payable to petty cash for 500 which
increases the petty cash register to 650 and then I issue a petty cash
cheque for the 500 in expenses.

Is there an easier way to do this? Especially that most of the common
supplies are purchased via cash at several suppliers.

Thanks,

JP
 
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H

HeyBub

John said:
How are people here in this group handling expenses that are incurred
by the owner. For example, owner purchases supplies for the
business, the receipts exceed what is in petty cash.

What I have set up is that if the receipts total 500 and the petty
cash remaining is 150. I write a cheque payable to petty cash for
500 which increases the petty cash register to 650 and then I issue a
petty cash cheque for the 500 in expenses.

Is there an easier way to do this? Especially that most of the
common supplies are purchased via cash at several suppliers.
Write the check to yourself. Debit "Office Supplies"
 
G

Golden California Girls

John said:
How are people here in this group handling expenses that are incurred by the
owner. For example, owner purchases supplies for the business, the receipts
exceed what is in petty cash.

What I have set up is that if the receipts total 500 and the petty cash
remaining is 150. I write a cheque payable to petty cash for 500 which
increases the petty cash register to 650 and then I issue a petty cash
cheque for the 500 in expenses.

Is there an easier way to do this? Especially that most of the common
supplies are purchased via cash at several suppliers.
Get a company credit card ...
 
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S

S.M. Serba

You could handle it one of two ways:

Set yourself up as a Vendor. Enter the Bill using your vendor account.
When you pay the bill, pay from Petty Cash then on a monthly basis
either cut yourself a cheque or make a G/L adjustment to transfer the
Petty Cash balance to the Owner's Equity or Owners' Drawing accounts.

OR you could set up a Due to Owner *BANK* type account and pay from
that (saves the extra step of transferring Petty Cash balance to Owner
Draw account). You could then either leave that or transfer that
balance to the Equity account.

Stephanie
 

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